Text: SF00268 Text: SF00270 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 175A.1 PURPOSE.
1 2 The purpose of this chapter is to assist this state's
1 3 livestock producers during periods of severe financial
1 4 hardship that threaten the economic viability of this state's
1 5 livestock producers.
1 6 Sec. 2. NEW SECTION. 175A.2 DEFINITIONS.
1 7 As used in this section, unless the context otherwise
1 8 requires:
1 9 1. "Authority" means the agricultural development
1 10 authority established in section 175.3.
1 11 2. "Cash flow requirement" means the availability of money
1 12 adequate to provide for obligations that become due during the
1 13 term of a loan for expenses related to livestock production.
1 14 3. "Family farm entity" means the same as defined in
1 15 section 10.1.
1 16 4. "Farm service agency" means the farm service agency of
1 17 the United States department of agriculture.
1 18 5. "Farming" means the same as defined in section 175.2.
1 19 6. "Livestock" means cattle or swine.
1 20 7. "Livestock operation" means a farm or animal feeding
1 21 operation as defined in section 455B.161 where livestock are
1 22 produced.
1 23 8. "Livestock producer" means a person engaged in
1 24 producing livestock.
1 25 9. "Produce" means to breed, raise, or feed, and care for
1 26 livestock.
1 27 10. "Program" means a livestock economic emergency program
1 28 as provided in this chapter.
1 29 11. "Qualified lending institution" means a bank, credit
1 30 union, or savings and loan as defined in section 12C.1.
1 31 12. "State assistance" means to grant a qualified lending
1 32 institution an amount foregone by the qualified lending
1 33 institution for reducing the interest rate on a loan as
1 34 provided in this chapter.
1 35 Sec. 3. NEW SECTION. 175A.3 GENERAL.
2 1 1. The agricultural development authority, in cooperation
2 2 with the department, shall establish and administer livestock
2 3 economic emergency programs as provided in this chapter to
2 4 provide state assistance to livestock producers during a
2 5 period of economic emergency.
2 6 2. The authority shall adopt rules as provided in chapter
2 7 17A necessary to establish and administer livestock economic
2 8 emergency programs.
2 9 3. A livestock producer shall apply for state assistance
2 10 under a program in a manner and according to procedures
2 11 required by the authority. The authority shall adopt rules to
2 12 enforce the provisions of this section or the terms of a
2 13 contract to which the authority is a party. The authority may
2 14 also enforce the provisions of this chapter or terms of a
2 15 contract by bringing an action in any court of competent
2 16 jurisdiction for injunctive relief or to recover damages.
2 17 Sec. 4. NEW SECTION. 175A.4 DECLARATION OF ECONOMIC
2 18 EMERGENCY.
2 19 The authority shall provide state assistance under
2 20 livestock economic emergency programs under this chapter, to
2 21 the extent that moneys are available. The authority shall
2 22 provide the state assistance upon a declaration of livestock
2 23 economic emergency issued by the secretary. The secretary
2 24 shall issue the declaration if the secretary determines that
2 25 the market price paid for livestock threatens the economic
2 26 viability of this state's livestock producers. The
2 27 determination shall be made after consulting with the
2 28 authority's board and agricultural economists at Iowa state
2 29 university of science and technology, and upon review of
2 30 market news reports published by the agricultural marketing
2 31 service of the United States department of agriculture.
2 32 Sec. 5. NEW SECTION. 175A.5 STATE ASSISTANCE.
2 33 1. The authority shall provide state assistance under a
2 34 livestock economic emergency program by contracting with a
2 35 qualified lending institution and a livestock producer to
3 1 reduce the interest rate charged on a loan for purposes of
3 2 satisfying or restructuring existing debt obligations.
3 3 2. As part of the contract for state assistance, the
3 4 authority shall agree to grant a qualified lending institution
3 5 an amount foregone by the qualified lending institution for
3 6 reducing the interest rate on a loan to the livestock producer
3 7 as provided in this chapter.
3 8 a. The authority may determine the amount that the rate is
3 9 reduced, by considering the qualified lending institution's
3 10 customary loan rate as certified to the authority by the
3 11 qualified lending institution.
3 12 b. The authority may require that a qualified lending
3 13 institution satisfy additional requirements in order to
3 14 participate in livestock economic emergency programs,
3 15 including by requiring the qualified lending institution to
3 16 partially reduce the interest rate on loans subject to the
3 17 contract for state assistance.
3 18 c. The authority shall not provide state assistance to
3 19 reduce the interest rate charged on a loan for more than
3 20 twelve months.
3 21 3. The authority shall not provide assistance under both
3 22 sections 175A.7 and 175A.8 to the same livestock producer.
3 23 Sec. 6. NEW SECTION. 175A.6 ELIGIBILITY.
3 24 1. The authority shall provide state assistance to a
3 25 livestock producer under a livestock economic emergency loan
3 26 program only if the authority determines that without such
3 27 state assistance the livestock producer could not reasonably
3 28 be expected to be able to obtain, retain, restructure, or
3 29 service loans or other financing.
3 30 2. A livestock producer is eligible to participate in a
3 31 livestock economic emergency program only if all the following
3 32 criteria are satisfied:
3 33 a. One of the following applies:
3 34 (1) The livestock producer is an individual or a
3 35 partnership. If the livestock producer is an individual or
4 1 partnership, all of the following must apply:
4 2 (a) The individual or all partners must be residents of
4 3 this state.
4 4 (b) The individual or all partners must be at least
4 5 eighteen years old.
4 6 (2) The livestock producer is a family farm entity
4 7 organized in this state.
4 8 b. The facilities involved in livestock production must be
4 9 located in this state.
4 10 c. The livestock producer does not produce livestock under
4 11 a contract with an owner of the livestock.
4 12 d. The gross income received by the livestock producer
4 13 from farming for the last completed calendar year was more
4 14 than fifty thousand dollars.
4 15 e. Fifty percent or more of the livestock producer's
4 16 income attributable to farming is derived from the sale of
4 17 livestock.
4 18 f. All of the following apply:
4 19 (1) The livestock producer is not classified as a habitual
4 20 violator under section 455B.191.
4 21 (2) The livestock producer has not committed a violation
4 22 of chapter 455B or of a rule adopted pursuant to chapter 455B
4 23 regulating animal feeding operations during the twelve-month
4 24 period immediately prior to the date of submission of the
4 25 application.
4 26 Sec. 7. NEW SECTION. 175A.7 LIVESTOCK ECONOMIC EMERGENCY
4 27 PROGRAM – COOPERATION WITH THE FARM SERVICE AGENCY.
4 28 1. The authority shall cooperate with the farm service
4 29 agency if the farm service agency provides emergency
4 30 assistance to livestock producers under a program administered
4 31 by the farm service agency.
4 32 a. The authority shall provide state assistance to
4 33 livestock producers who apply to the farm service agency for
4 34 emergency assistance in order to retain, restructure, or
4 35 service loans or other financing.
5 1 b. The authority shall approve an application for state
5 2 assistance only if a livestock producer is provided emergency
5 3 assistance by the farm service agency. The authority shall
5 4 provide state assistance to the extent necessary to allow
5 5 livestock producers to qualify for emergency federal
5 6 assistance by enhancing the livestock producer's cash flow
5 7 requirement.
5 8 2. The authority shall grant a qualified lending
5 9 institution not more than two percent of the amount foregone
5 10 by the qualified lending institution in reducing the interest
5 11 rate on the loan as provided in this chapter.
5 12 Sec. 8. NEW SECTION. 175A.8 LIVESTOCK ECONOMIC EMERGENCY
5 13 PROGRAM – INDEPENDENT PROGRAM.
5 14 1. The authority shall provide state assistance to
5 15 livestock producers under the livestock economic emergency
5 16 program independent of assistance provided by the farm service
5 17 agency as provided in section 175A.7.
5 18 2. The authority shall provide state assistance to
5 19 livestock producers who apply to the authority in order to
5 20 retain, restructure, or service loans or other financing.
5 21 a. The authority may require that the livestock producer
5 22 and the qualified lending institution restructure existing
5 23 debt.
5 24 b. A livestock producer must participate in a program
5 25 administered by the Iowa cooperative extension service in
5 26 agriculture and home economics at Iowa state university of
5 27 science and technology that provides financial management and
5 28 counseling services to individual farm operators as provided
5 29 in section 266.36.
5 30 3. The application shall contain financial information
5 31 regarding the livestock producer as required by the authority.
5 32 The application must include all of the following:
5 33 a. The livestock producer's projected cash flow
5 34 requirements if the application is approved.
5 35 b. A statement by Iowa state university certifying that
6 1 the livestock producer is participating in the program
6 2 provided in section 266.36.
6 3 4. The authority shall grant a qualified lending
6 4 institution not more than three percent of the amount foregone
6 5 by the qualified lending institution in reducing the interest
6 6 rate on the loan as provided in this chapter.
6 7 Sec. 9. APPROPRIATION – DEPARTMENT OF AGRICULTURE AND
6 8 LAND STEWARDSHIP. There is appropriated from the general fund
6 9 of the state to the department of agriculture and land
6 10 stewardship for the fiscal year beginning July 1, 1998, and
6 11 ending June 30, 1999, the following amount, or so much thereof
6 12 as is necessary, to be used for the purpose designated:
6 13 For the purpose of supporting the livestock economic
6 14 emergency programs as provided in this Act:
6 15 .................................................. $ 9,000,000
6 16 1. The moneys appropriated pursuant to this section shall
6 17 be used to reduce the interest rate charged on loans for
6 18 purposes of satisfying or restructuring existing debt
6 19 obligations as provided in this Act. Of the amount
6 20 appropriated in this section, not more than $2,000,000 shall
6 21 be used to provide emergency assistance to livestock producers
6 22 under a program administered in cooperation with the farm
6 23 service agency as provided in section 175A.7.
6 24 2. Notwithstanding the reversion date provisions of
6 25 section 8.33, unencumbered and unobligated moneys appropriated
6 26 pursuant to this section remaining on June 30, 1999, shall
6 27 remain available until the close of the following fiscal year.
6 28 Sec. 10. APPROPRIATION – IOWA STATE UNIVERSITY. There is
6 29 appropriated from the general fund of the state to the state
6 30 board of regents for the fiscal year beginning July 1, 1998,
6 31 and ending June 30, 1999, the following amount, or so much
6 32 thereof as is necessary, to be used for the purpose
6 33 designated:
6 34 For the purpose of supporting a program administered by the
6 35 Iowa cooperative extension service in agriculture and home
7 1 economics at Iowa state university of science and technology
7 2 to provide financial management and counseling services to
7 3 individual farm operators as provided in section 266.36:
7 4 .................................................. $ 500,000
7 5 Notwithstanding the reversion date provisions of section
7 6 8.33, unencumbered and unobligated moneys appropriated
7 7 pursuant to this section remaining on June 30, 1999, shall
7 8 remain available until the close of the following fiscal year.
7 9 Sec. 11. APPROPRIATION – DEPARTMENT OF JUSTICE. There
7 10 is appropriated from the general fund of the state to the
7 11 department of justice for the fiscal year beginning July 1,
7 12 1998, and ending June 30, 1999, the following amount, or so
7 13 much thereof as is necessary, to be used for the purpose
7 14 designated:
7 15 For the purpose of supporting the farm mediation service as
7 16 provided in section 13.13 in conducting farmer-creditor
7 17 mediation as provided in chapter 654A:
7 18 .................................................. $ 500,000
7 19 Notwithstanding the reversion date provisions of section
7 20 8.33, unencumbered and unobligated moneys appropriated
7 21 pursuant to this section remaining on June 30, 1999, shall
7 22 remain available until the close of the following fiscal year.
7 23 Sec. 12. EFFECTIVE DATE. This Act, being deemed of
7 24 immediate importance, takes effect upon enactment.
7 25 EXPLANATION
7 26 This bill creates a new Code chapter 175A for purposes of
7 27 assisting this state's livestock producers during periods of
7 28 severe financial hardship.
7 29 The bill requires the agricultural development authority to
7 30 provide state assistance to livestock producers during a
7 31 period of economic emergency as declared by the secretary of
7 32 agriculture. The bill provides that state assistance is
7 33 provided to qualified financial institutions, by reducing the
7 34 interest rate charged on loans for purposes of satisfying or
7 35 restructuring existing debt obligations. The bill provides
8 1 that the authority must provide state assistance to a
8 2 livestock producer under a livestock economic emergency loan
8 3 program only if the authority determines that without such
8 4 state assistance the livestock producer could not reasonably
8 5 be expected to be able to obtain, retain, restructure, or
8 6 service loans or other financing. The bill imposes a number
8 7 of requirements upon the producer in order to participate in a
8 8 program. The producer must be an individual, partnership, or
8 9 family farm entity (such as a family farm corporation). The
8 10 producer cannot produce livestock under contract with an
8 11 owner. The bill provides for income requirements. It
8 12 provides that a producer cannot be classified as a habitual
8 13 violator of environmental regulations or have committed an
8 14 environmental violation for the last 12 months.
8 15 The bill provides for two programs. The bill requires the
8 16 authority to cooperate with the farm service agency of the
8 17 United States department of agriculture to provide emergency
8 18 assistance to livestock producers under a program administered
8 19 by the farm service agency. The bill authorizes the authority
8 20 to provide interest rate buy down to allow a producer to
8 21 qualify for federal assistance by enhancing the livestock
8 22 producer's cash flow requirement.
8 23 The bill creates a program to assist producers
8 24 independently of rate buy down provided in cooperation with
8 25 the federal farm service agency. The bill provides that the
8 26 authority may provide interest rate buy down to producers who
8 27 apply to the authority in order to retain, restructure, or
8 28 service loans or other financing. The bill requires the
8 29 producer to participate in a program administered by the Iowa
8 30 cooperative extension service in agriculture and home
8 31 economics at Iowa state university of science and technology,
8 32 which provides financial management and counseling services to
8 33 individual farm operators.
8 34 The bill appropriates $10,000,000 to the department of
8 35 agriculture and land stewardship, Iowa state university of
9 1 science and technology, and the department of justice for the
9 2 current fiscal year. The appropriations support livestock
9 3 economic emergency programs, financial management and
9 4 counseling services to individual farm operators, and
9 5 mediation between farmers and creditors.
9 6 The bill takes effect upon enactment.
9 7 LSB 2237XS 78
9 8 da/sc/14.1
Text: SF00268 Text: SF00270 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
© 1999 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Wed Jan 12 05:55:00 CST 2000
URL: /DOCS/GA/78GA/Legislation/SF/00200/SF00269/990302.html
jhf